Dana Holding Corp. has announced financial results for the second quarter of 2016.
Sales totaled $1.55 billion, compared with $1.61 billion in 2015. Dana’s Light Vehicle Driveline and Power Technologies business units posted combined currency-adjusted sales growth of $87 million, 10 percent higher than a year ago, driven by higher light-vehicle end-market demand in North America, Europe and Asia, as well as new business gains. Foreign-currency translation lowered sales by $44 million. Currency-adjusted sales were lower by 1.3 percent in the second quarter of 2016, primarily due to weaker market demand in the commercial vehicle and off-highway segments, as well as lower sales with a major North American commercial vehicle customer.
Net income attributable to Dana for the second quarter of 2016 was $53 million, compared with $59 million a year ago. This year’s second quarter included a loss on extinguishment of debt of $17 million related to completion of a bond refinancing. Partially offsetting this charge was lower restructuring and income tax expense.
Reported diluted earnings per share were 36 cents in the second quarter of both 2016 and 2015, with a lower share count in 2016 offsetting lower net income in this year’s second quarter. Diluted adjusted earnings per share in the second quarter of 2016 were 53 cents, compared with 48 cents in the same period last year, driven by the lower share count as a result of the share repurchase program.
“The second quarter was a positive one for Dana and consistent with our expectations. We continue our trajectory toward achieving our objectives this year. Our Light Vehicle Driveline and Power Technologies businesses grew organically by 10 percent and improved margins. While we saw lower demand than the prior year in the commercial- and off-highway vehicle markets, this was expected,” said James Kamsickas, Dana president and CEO. “Our Commercial Vehicle Driveline business anticipated lower volumes and improved their margins for the second quarter in a row, while our Off-Highway Driveline business, once again, was able to maintain margins despite lower volume.”
2016 full-year financial targets
Dana has affirmed key financial guidance, including:
- Sales of $5.8 billion to $6 billion;
- Adjusted EBITDA of $640 million to $670 million;
- Adjusted EBITDA as a percent of sales of 11.0 to 11.2 percent;
- Diluted adjusted EPS of $1.65 to $1.75 (excluding the impact of share repurchases after June 30, 2016);
- Cash flow from operations of $450 million to 470 million;
- Capital spending of $320 million to $340 million; and
- Free cash flow of $120 million to $140 million.
Name change
Dana Holding Corp. also announced that, effective Aug. 1, it will change the company name to Dana Inc. The company says this name change is aimed to better reflect how the company conducts its business in the global marketplace – as a unified organization with an intense focus on customer satisfaction, manufacturing excellence and advanced technology across all mobility sectors.
“This is a historic and significant pronouncement by our company,” said Kamsickas. “Dana operates as a unified global manufacturer and supplier of goods and services to the vehicular industry. Our new name connects with the cohesiveness of the Dana team members and our united commitment to provide exceptional performance to our stakeholders.”
Dana will continue to operate four business segments focused on power conveyance and energy management solutions for three key end markets. The iconic company logo, the Dana Diamond, will remain as the corporate mark. In addition, the New York Stock Exchange ticker symbol DAN, the organizational structure and leadership team will continue.
The new name will be reflected on the company website, dana.com, and online social media channels: Facebook, Twitter, LinkedIn and Google+.
